New Mexico vs South Dakota Taxes: Income, Property & Sales

Does New Mexico or South Dakota have lower taxes? We answer that in a variety of ways below:

New Mexico vs South Dakota Income Tax Comparison

	New Mexico	South Dakota
Income Tax Rates & Thresholds	1.70%: $0-$5,500 3.20%: $5,501-$11,000 4.70%: $11,001-$16,000 4.90%: $16,001-$210,000 5.90%: $210,001+	None
Median Income	$56,420	$67,180
Income Tax Paid On Median Household Income	$7,031	$7,547
Income After Tax Based on Median Household Income	$49,389	$59,633

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New Mexico vs South Dakota Property Tax Comparison

	New Mexico	South Dakota
Average Property Tax Rate	0.60%	1.03%
Average House Price By State	$293,766	$296,811
Average Property Tax Owed Per Year	$1,763	$3,057
Income After Income Taxes & Property Taxes Based On Median State Household Income	$47,626	$56,576

New Mexico vs South Dakota Sales Tax Comparison

	New Mexico	South Dakota
Average State Sales Tax	5.13%	4.50%
Average Local Sales Tax Across the State	2.71%	1.90%
Average Combined Sales Tax Rate	7.84%	6.40%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,462	$3,403
Maximum Disposable Income Based on Median Household Income	$44,164	$53,173

After Tax Comparison Earning $40,000 Per Year Filing As Single

	New Mexico	South Dakota
Income Tax Owed	$4,086	$3,040
After Tax Income	$35,914	$36,960
Income After Income & Property Tax	$34,151	$33,903
Maximum Disposable Income After Income, Property & Sales Taxes	$31,669	$31,864

After Tax Comparison Earning $60,000 Per Year Filing As Single

	New Mexico	South Dakota
Income Tax Owed	$7,994	$5,968
After Tax Income	$52,006	$54,032
Income After Income & Property Tax	$50,243	$50,975
Maximum Disposable Income After Income, Property & Sales Taxes	$46,591	$47,909

After Tax Comparison Earning $80,000 Per Year Filing As Single

	New Mexico	South Dakota
Income Tax Owed	$13,374	$10,368
After Tax Income	$66,626	$69,632
Income After Income & Property Tax	$64,863	$66,575
Maximum Disposable Income After Income, Property & Sales Taxes	$60,148	$62,570

After Tax Comparison Earning $100,000 Per Year Filing As Single

	New Mexico	South Dakota
Income Tax Owed	$18,754	$14,768
After Tax Income	$81,246	$85,232
Income After Income & Property Tax	$79,483	$82,175
Maximum Disposable Income After Income, Property & Sales Taxes	$73,705	$77,232

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	New Mexico	South Dakota
Income Tax Owed	$11,704	$8,481
After Tax Income	$88,296	$91,519
Income After Income & Property Tax	$86,533	$88,462
Maximum Disposable Income After Income, Property & Sales Taxes	$80,242	$83,141

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	New Mexico	South Dakota
Income Tax Owed	$24,209	$18,536
After Tax Income	$125,791	$131,464
Income After Income & Property Tax	$124,028	$128,407
Maximum Disposable Income After Income, Property & Sales Taxes	$115,012	$120,683

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	New Mexico	South Dakota
Income Tax Owed	$37,659	$29,536
After Tax Income	$162,341	$170,464
Income After Income & Property Tax	$160,578	$167,407
Maximum Disposable Income After Income, Property & Sales Taxes	$148,904	$157,337

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	New Mexico	South Dakota
Income Tax Owed	$52,028	$41,455
After Tax Income	$197,972	$208,545
Income After Income & Property Tax	$196,209	$205,488
Maximum Disposable Income After Income, Property & Sales Taxes	$181,945	$193,128

FAQ

Does New Mexico or South Dakota have lower income taxes?

New Mexico’s income tax falls into the following range:

• 1.70%: $0-$5,500
• 3.20%: $5,501-$11,000
• 4.70%: $11,001-$16,000
• 4.90%: $16,001-$210,000
• 5.90%: $210,001+

Whereas South Dakota’s income tax is the following None

Does New Mexico or South Dakota have lower property taxes?

New Mexico has an average property tax rate of 0.60%

In comparison, South Dakota has an average property tax rate of 1.03%

Does New Mexico or South Dakota have lower sales taxes?

New Mexico has a state sales tax rate of 5.13% and an average local rate of 2.71% for a combined total rate of 7.84%.

In contrast, South Dakota has a state sales tax rate of 4.50% and an average local rate of 1.90% for a combined total rate of 6.40%.

Do you get to keep more money in New Mexico or South Dakota?

Based on median household income after income, property and sales taxes New Mexico gives you a maximum amount of disposable income of $44,164

In comparison, South Dakota gives you $53,173.

More Comparisons:

New Mexico vs North Dakota
New Mexico vs Alaska
New Mexico vs Washington DC
New Mexico vs Vermont
New Mexico vs Wyoming

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/